By Rosemary Onuoha
THE dearth of data in the insurance industry is undermining the growth of actuarial services in the sector leading to under-pricing of risks.
Speaking to Insurance Vanguard, President of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mr. Shola Tinubu, said the dearth of data in the sector also contributed to the migration of many actuarial scientists to overseas where their services are highly needed.
Tinubu said, “The insurance industry is supposed to deal more on statistics, data and figure analytics. In essence, actuaries are meant to assist the operators in pricing. Unfortunately, the industry has been totally uninterested in statistics and keeping of data as well as bringing forth the data to determine prices and claims, and plan for the future.”
Speaking on the predicament of actuaries in the country, Tinubu stated: “I read Actuarial Science in the University of Lagos and had many course mates who had first class in the course. Many of them wanted to practice the profession after school but had to travel out of the country because the only industry where they could have served was not interested in their services.”
He, however, said that there is a reawakening of the knowledge that data and statistics are the bedrock of the insurance industry, adding that operators are beginning to realize that they need the services of actuaries.
Also speaking on the development, Chief Operating Officer and Executive Director, AIICO Insurance Plc, Mr. Tunde Fajemirokun, said that the industry have had a lot of challenges in the actuarial function.
He said, “We have had challenges in the actuarial function in the industry. As a result, AIICO recently recruited a qualified actuary. The move is already adding a lot of value in our product designs as well as other solutions in provision of contracts to our customers.”